Shares in home furnishings outfit Dunelm tumbled 5.0% to 1,064p, making it the biggest faller in the FTSE 250, after RBC Capital Markets downgraded the stock.
The broker moved the company to underperform from sector perform and slashed its price target to 1,000p from 1,300p.
”With cost of living pressures persisting, unfavourable movements in the UK housing market and only a moderate store expansion story, we think that growth will be more difficult to come by now,” the broker said.
“As such, we see greater upside potential in travel (SSP, WH Smith, Dufry) and Discount (AB Foods, B&M Value Retail) given strong topline momentum and meaningful expansion for these names.“
RBC still views Dunelm “as a well-managed business with a strong position in the UK homewares market.”